The popular commercial area of 3rd and 70, in the Playa municipality of Havana, is today the setting for a stark contrast that reflects the economic and social tensions in Cuba.
While the store in freely convertible currency (MLC) appears increasingly out of stock, the new store operating in US dollars, located on the ground floor of the Gran Muthu Habana Hotel, features fully stocked shelves and a steady stream of customers.
According to a video shared by La Kinkalla TV, the MLC store, which until recently was a necessary option for many Cubans with access to remittances, now offers a limited selection of basic goods and appliances.
The shelves of the refrigerators were empty, and the fridges held only a few products, most of which were unappealing; these are the first images shown in the video.
On the drinks side, it was almost empty, with just a few Parranda beers in sight.
The most stocked area was the juice section, although it lacked variety. The clip also shows the presence of canned goods, pasta, and other products that do not meet all the needs of the Cuban people.
Introduced in 2019, the MLC stores were a measure by the Cuban government to attract foreign currency amid a growing economic crisis and shortages of basic goods.
These stores allow the purchase of goods using foreign currencies such as the US dollar or the euro, through magnetic cards linked to accounts in these currencies.
On the other hand, the new dollar store, which opened just a few days ago, is better stocked with both domestic and foreign products, such as cured meats, beers, soft drinks, meats, and appliances.
However, prices are high and exceed the average monthly salary in Cuban pesos, making it difficult for most of the population to access them. This has led to frustration among consumers who do not have access to US currency and criticize the increasing segmentation of the Cuban market.
It has also been reported that some state-run stores have started to refuse payments in MLC, accepting only cash in dollars or international cards, which has led to criticism from the public.
"It's a mockery. You can't find what you need either in MLC or in Cuban pesos, but if you have dollars, everything seems to be easier," several Cubans agree on social media.
Cuban authorities have defended the opening of these dollar stores as a measure to attract foreign currency and keep the economy afloat amid the crisis. However, this strategy has exacerbated inequalities in access to consumer goods, creating a parallel market that leaves many citizens on the sidelines.
Analysts point out that the coexistence of MLC stores alongside others that accept dollars reflects the duality of an economy increasingly reliant on foreign currencies. Meanwhile, at 3rd and 70, the differences in the queues and shopping bags of buyers visibly reflect the tensions of a country struggling to sustain itself in an uncertain economic context.
Frequently Asked Questions about the Economic and Trade Situation in Cuba
Why are the MLC stores in Cuba out of stock?
The stores selling freely convertible currency (MLC) in Cuba are understocked due to the economic crisis and the shortage of foreign currency affecting the country. These stores were established to attract foreign currency, but the availability of products has decreased significantly, reflecting the government's inability to maintain a consistent and varied supply. The situation is further exacerbated by the existence of other stores that only accept dollars, leading to inequalities in access to goods.
What does the opening of supermarkets that only accept dollars mean in Cuba?
The opening of supermarkets that only accept dollars in Cuba signifies a partial dollarization of the economy and exacerbates social inequalities. Although these stores are well-stocked, they exclude the majority of Cubans who do not have access to foreign currency, creating a dual market that intensifies economic and social tensions on the island. Furthermore, prices in these supermarkets are often out of reach for the average Cuban, which increases social discontent.
How has dollarization affected the Cuban economy?
Dollarization has intensified economic and social inequalities in Cuba. By prioritizing transactions in dollars, the Cuban government has left a large portion of the population without access to basic goods, as their salaries are paid in Cuban pesos, a devalued currency. This policy has also led to an increased demand for dollars in the informal market, driving up exchange rates and eroding the purchasing power of remittances sent from abroad.
What consequences has the opening of dollar stores had for the Cuban population?
The opening of stores that only accept dollars has heightened inequality and economic exclusion in Cuba. These establishments, while well-stocked, are inaccessible to the majority of Cubans who lack access to foreign currency, leading to feelings of frustration and disparity. Furthermore, the pressure on the informal currency market has driven up the cost of the dollar, further impacting those who rely on remittances to survive.
What is the reaction of Cubans to the recent economic measures?
The reaction of Cubans to recent economic measures has been one of outrage and criticism. Many citizens have voiced their frustration over the exclusion caused by the dollarization of certain commercial sectors and the shortages in MLC stores. This situation has led to an increase in social discontent and criticism of the government, which is prioritizing the influx of foreign currency amidst an economic crisis.
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